New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-05-07
THE KANSAS PACIFIC POOL.

CONNECTION OF JAY GOULD AND RUSSELL. SAGE
WITH II-MEN BEFORE THE COMMISSION.
After long executive session yesterday morning the
Pacific Railroad Commission resumed its work in public
by examining James NJ. Ham, assistant secretary and
treasurer OF the Union Pacific and private secretary OF
Sidney Dillon. Mr. Ham treasurer Of the Kansas
Pacific up TO 1880 and became connected with the Union
Pacific two three years before that In testifyng
about the famous Kansas Pacific pool. he said that he
kept the OF IT, that the securities In It de-
posted with Jay Gould and Russell Sage trustees and
are still in their hands lie could say that the dis
trbution pool stock Mr. Gould received than
all the rest combined. When the Denver Pacific
was liberated 1t given to him aud he delivered it to
the Union Trust Company by direction OF Mr.. Dillon No
tIorisng transfer Of this stock to Mr. Gould Mr Dillon
any else but II transferred 10 them and others
in exchange for other securities such as Kansas and
| Nebraska, Kansas Central Hastings and Grand Island
/ and other branch roads
At the close OF Mr. Hams examination ex-Judge Dill
Ion asked permission him. but this was
not allowed He was permitted, however, TO ask the
witness questions One OF thes. was whether the
securities accepted by the Kansas Pacific for the Denver
stock had proven profitable Mr. Ham said that every
one OF them had yielded an income
After Alm0n Goodwin. OF Vanderpoc, Green 4
| Cunning, who counsel for Jay Gould aud Russell
Sage In the suit brought TO secure the release OF the Den
yer Pacific stock from the consolidated mortgas
called to the stand and examined briefly lie said that
when the suit was brought he was not aware that the
articles OF consolidation OF the Union Pacific and Kansas
pas mad Dssn a u me mS s OS aae
counts OF II In the newspapers he received ms instrnc
lions IN the matter from OOulu anu MI. sage ana
never had anything do with Mr. Dillon until he
ined him before Referee Ruggles Commissioner Ander
asked him great many questions about the value
placed the Denver stock by Mr. Could but no nfor
| nation OF importance was obtained IN reply.
Ex-senator George H. Forster called, but
| cused until another time Then Albert s. Rosenbaum.
retired California tobacco merchant was called and
hyened the proceedings little by recital of his expert
ences with the Union Pacific IN the OF his es
tmony he declared that he had been driven out OF bs
the Pacific Coast by the road IL issued circu
lar the merchants there warning them not to ship
goods around the Horn In fact by other than
its line under penalty OF having rates raised 100
per cent he told about the way In which he had
been treated by the company in bond transaction Ie
had $20O000 worth OF Kansas Pacific securities which
he sold 70 the Union Pacific at per cent below par
" How much did You pay for these securtesi" asked
ex- Judge Dillon in crossexanining the Witness
After some hesitation Mr.. Rosenbaum said that they
cost him the from fifty 20 sixty cents the
dollar The commissioners smiled They smiled again
when he admitted later that he afterward bought more
stock at par which he trying 10 get the
pany to take at good round premium. Then IL began
10 appefr that Mr. Rosenbaum knew great deal about
Western railroad securities and he allowed 10 talk
about them for the edihcation OF the commission.
The next public session will be held on Tuesday morn
ing.